CITY OF LOS ANGELES CALIFORNIA

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DEPARTMENT OF CITY PLANNING 200 N. SPRING STREEJA ROOM 525 Los ANGELES, CA 9u0 I2-480 I AND 6262 VAN NUYS BLVD., SUITE 351 VANNUYS, CA 9I401. CITY PLANNING COMMISSION DAVID H. J. AMBROZ PRESIDENT RENEE DAKE WILSON VICE-PRESIDENT ROBERT L. AHN MARIA CABILDO CAROLINE CHOE RICHARD KATZ JOHNW.MACK DANA M. PERLMAN MARTA SEGURA JAMES K. WILLIAMS COMMISSION EXEctrrJVE ASSIST ANT [J (213) 978-1300 CITY OF LOS ANGELES CALIFORNIA ERIC GARCETTI MAYOR EXECUTIVE OFFICES 200 N. SPRING STRE!l!, ROOM 525 Los ANGELES, CA wo I2-4801 MJCHAEL J. LOGRANDE DIRECTOR (2I3) 978-127I LISA M. WEBBER, AICP DEPUTY DIRECTOR (213) 978-1274 JAN ZATORSKI DEPUTY DIRECTOR (213) 978-I273 FAX: (2I3) 978-I275 INFORMATION http://planning.iacity.org March 25, 2015 DIRECTOR'S DETERMINATION DENSITY BONUS AFFORDABLE HOUSING INCENTIVES AND SITE PLAN REVIEW Owner CLG Culver City Residential LLC. 5900 Canoga Ave. Woodland Hills, CA 91367 Applicant Lou Jacobs California Landmark SHG LLC. 1 0600 Santa Monica Blvd Los Angeles, CA 90025 Case No. CEQA: Location: Council District: Neighborhood Council Community Plan Area: Land Use Designation: Zone: Legal Description: DIR-2014-2880-DB-SPR ENV-2014-2881-MND 3822-3842 S. Dunn Drive 5- Paul Koretz Palms Palms-Mar Vista-Del Rey General Commercial R5P-1 TR: Dunn's Blvd Square, Lots 14-18 Representative Eric Lieberman QES, Inc. 14549 Archwood St. Suite 308 Los Angeles, CA 91405 Last Day to File an April 9, 2015 Appeal: DETERMINATION- Density Bonus/Affordable Housing Incentives Program Pursuant to the Los Angeles Municipal Code (LAMC) Section 12.22 A.25, I have reviewed the proposed project and as the designee of the Director of Planning, I hereby: Approve the following two incentives requested by the applicant for a project totaling 86 dwelling units, reserving at least 11 percent, or 7 dwelling units of the 63 total "base" dwelling units permitted on the site, for Very Low Income household occupancy for a period of 55 years, subject to the attached conditions of approval below:

1. Floor Area Ratio. An allowance for a 4.05:1 Floor Area Ratio in lieu of the normally required 3:1 Floor Area ratio 2. Setback. A 20 percent reduction in the rear yard setback to 15 feet 2 inches in lieu of 19 feet; DETERMINATION- Site Plan Review Pursuant to LAMC Section 16.05, I have reviewed the proposed project and as the designee of the Director of Planning, I hereby: Approve with Conditions a Site Plan Review for the construction of a sevenstory, multi-family development consisting of 79 market rate units and 7 restricted affordable units for Very-Low Income residents, including one above grade parking level and one subterranean parking level, with a maximum building height of 85 feet. Adopt Mitigated Negative Declaration ENV-2014-2881-MND as the project's environmental clearance pursuant to the California Environmental Quality Act and Section 20182.1(c)(3) of the California Public Resources Code. Adopt the attached Findings. The project approval is based upon the attached Findings, and subject to the attached Conditions of Approval: 0/R-2014-2880-DB-SPR Page 2of16

CONDITIONS OF APPROVAL 1. Site Development. Except as modified herein, the project shall be in substantial conformance with the plans and materials submitted by the Applicant, stamped "Exhibit A," and attached to the subject case file. No change to the plans will be made without prior review by the Department of City Planning, Plan Implementation Division, and written approval by the Director of Planning. Each change shall be identified and justified in writing. Minor deviations may be allowed in order to comply with the provisions of the Los Angeles Municipal Code or the project conditions. 2. Residential Density. The project shall be limited to a maximum density of 86 residential units including Density Bonus Units. 3. Affordable Units. A minimum of 7 units, that is 11 percent of the base dwelling units, shall be reserved as affordable units for very-low income residents, as defined by the State Density Bonus Law 65915 (C)(2). 4. Changes in Restricted Units. Deviations that increase the number of restricted affordable units or that change the composition of units or change parking numbers shall be consistent with LAMC Section 12.22 A.25 (9a-d). 5. Housing Requirements. Prior to issuance of a building permit, the owner shall execute a covenant to the satisfaction of the Los Angeles Housing and Community Investment Department (HCIDLA) to make 7 units available to Very-Low Income Households for sale or rental as determined to be affordable to such households by HCIDLA for a period of 55 years. Enforcement of the terms of said covenant shall be the responsibility of HCIDLA. The applicant will present a copy of the recorded covenant to the Department of City Planning for inclusion in this file. The project shall comply with the Guidelines for the Affordable Housing Incentives Program adopted by the City Planning Commission and with any monitoring requirements established by the HCIDLA. Refer to the Density Bonus Legislation Background section of this determination. 6. Automobile Parking. Based upon the number of dwelling units proposed, 77 parking spaces shall be provided for the residential project. Vehicle parking shall be provided consistent with LAMC Section 12.22 A.25, Parking Option 1, which permits 1 parking space for each residential unit of 0-1 bedrooms, 2 spaces for each residential unit of 2-3 bedrooms, and 2.5 spaces for each residential unit of 4 or more bedrooms. The Bicycle Parking Ordinance, LAMC Section 12.21.A.4, allows residential projects that have applied for and received a density bonus under LAMC Section 12.22 A.25 to reduce required vehicle parking by 30 percent. The project will reduce the required automobile parking by 21 spaces (from 98 to 77) through the provision of 95 bicycle parking spaces. In addition to the 77 automobile parking spaces, 14 automobile spaces must be provided and maintained for the adjacent medical center as required in a Zoning Administrator's letter dated July 16, 2014 and associated with Case Nos. ZV84-069 and ZA-85-0815(ZV). 7. Adjustment of Parking. In the event that the number of Restricted Affordable Units should increase, or the composition of such units should change (i.e. the number of bedrooms, or the number of units made available to Senior Citizens and/or Disabled Persons), or the applicant selects another Parking Option (including Bicycle Parking Ordinance) and no other Condition of Approval or incentive is affected, then no modification of this determination shall be necessary, and the number of parking spaces shall be re-calculated by the Department of Building and Safety based upon the ratios set forth above. 0/R-2014-2880-0B-SPR Page 3 of 16

8. Bicycle Parking. Bicycle parking shall be provided consistent with LAMC 12.21.A.16. Longterm bicycle parking shall be provided at a rate of one per dwelling unit of guest room. Additionally, short-term bicycle parking shall be provided at a rate of one per ten dwelling units or guest rooms, with a minimum of two short-term bicycle parking space. Based upon the number of dwelling units and the permitted replacement of thirty (30) percent of the required automobile parking with bicycle parking for affordable residential buildings per LAMC 12.21.A.4, 86 long-term and 9 short-term bicycle parking spaces shall be provided onsite. 9. Rear Yard. The rear yard setback shall be no less than 15 feet 2 inches. 10. Open Space. The project shall provide at least 8,900 square feet of usable open space. 11. Floor Area Ratio (FAR). The project shall be limited to a maximum floor area ration of 4.05:1. 12. Landscaping. All open areas not used for buildings, driveways, parking areas, recreational facilities or walks shall be attractively landscaped, including an automatic irrigation system, and maintained in accordance with a landscape plan prepared by a licensed landscape architect or licensed architect, and submitted for approval to the Department of City Planning. The landscape plan shall indicate landscape points for the project required by LAMC 12.40 and Landscape Ordinance Guidelines "0". Environmental Mitigation Conditions 13. Aesthetics (Light). Outdoor lighting shall be designed and installed with shielding, such that the light source cannot be seen from adjacent residential properties or the right-of-way, nor from above. 14. Aesthetics (Glare). The exterior of the proposed structure shall be constructed of materials such as, but not limited to, high-performance and/or non-reflective tinted glass (no mirror-like tints or films) and pre-cast concrete or fabricated wall surfaces to minimize glare and reflected heat. 15. Tree Removal (Non-Protected Trees) a. All significant (8-inch or greater trunk diameter, or cumulative trunk diameter if multitrunked, as measured 54 inches above the ground) non-protected trees on the site proposed for removal shall be replaced at a 1:1 ratio with a minimum 24-inch box tree. Net, new trees, located within the parkway of the adjacent public right(s)-of-way may be counted toward replacement tree requirements. b. Removal or planting of any tree in the public right-of-way requires approval of the Board of Public Works. Contact Urban Forestry Division at: 213-847-3077. All trees in the public right-of-way shall be provided per the current standards of the Urban Forestry Division of the Board of Public Works, Bureau of Street Services. 16. Tree Removal (Public Right-of-Way) a. Removal of trees in the public right-of-way requires approval of the Board of Public Works b. The required Tree Report shall include the location, size, type, and condition of all existing trees in the adjacent public right-of-way and shall be submitted for review and approval by the Urban Forestry Division of the Bureau of Street Services, Department of Public Works (213-847-3077) c. The plan shall contain measures recommended by the tree expert for the preservation of as many trees as possible. Mitigation measures such as replacement by a minimum of 24-inch box trees in the parkway and on the site, on a 1:1 basis, shall be required for the DIR-2014-2880-08-SPR Page 4 of 16

unavoidable loss of significant (8-inch or greater trunk diameter, or cumulative trunk diameter if multi-trunked, as measured 54 inches above the ground) trees in the public right-of-way d. All trees in the public right-of-way shall be provided per the current Urban Forestry Division standards 17. Increased Vehicle Trips/Congestion. Implementing measure(s) detailed in Department of Transportation's communication to the Planning Department dated November 7, 2014 and attached shall be complied with. Such report and mitigation measure(s) are incorporated herein by reference 18. Utilities (Local Water Supplies - Landscaping) a. The project shall comply with Ordinance No. 170,978 (Water Management Ordinance), which imposes numerous water conservation measures in landscape, installation, and maintenance (e.g. use drip irrigation and soak hoses in lieu of sprinklers to lower the amount of water lost to evaporation and overspray, set automatic sprinkler systems to irrigate during the early morning or evening hours to minimize water loss due to evaporation, and water less in the cooler months and during the rainy season). b. In addition to the requirements of the Landscape Ordinance, the landscape plan shall incorporate the following: i. Weather-based irrigation controller with rain shutoff ii. Matched precipitation (flow) rates for sprinkler heads iii. Drip/micro-spray/subsurface irrigation where appropriate iv. Minimum irrigation system distribution uniformity of 75 percent v. Proper hydro-zoning, turf minimization and use of native/drought tolerant plant materials vi. vii. Use of landscape contouring to minimize precipitation runoff A separate water meter (or submeter), flow sensor, and master valve shutoff shall be installed for existing and expanded irrigated landscape areas totaling 5,000 sf. and greater. 19. Utilities (Local Water Supplies - All New Construction) a. If conditions dictate, the Department of Water and Power many postpone new water connections for this project until water supply capacity is adequate. b. Install high-efficiency toilets (maximum 1.28 gpf), including dual-flush water closets, and high-efficiency urinals (maximum 0.5 gpf), including no-flush or waterless urinals, in all restrooms as appropriate. c. Install restroom faucets with a maximum flow rate of 1.5 gallons per minute. d. A separate water meter (or submeter), flow sensor, and master valve shutoff shall be installed for all landscape irrigation uses. e. Single-pass cooling equipment shall be strictly prohibited from use. Prohibition of such equipment shall be indicated on the building plans and incorporated into tenant lease agreements. (Single-pass cooling refers to the use of potable water to extract heat from process equipment, e.g. vacuum pump, ice machines, by passing the water through equipment and discharging the heated water to the sanitary wastewater system.) Administrative Conditions 20. Final Plans. Prior to the issuance of any building permits for the project by the Department of Building and Safety, the applicant shall submit all final construction plans that are awaiting issuance of a building permit by the Department of Building and Safety for final review and 0/R-2014-2880-DB-SPR Page 5 of 16

approval by the Department of City Planning. All plans that are awaiting issuance of a building permit by the Department of Building and Safety shall be stamped by Department of City Planning staff "Final Plans". A copy of the Final Plans, supplied by the applicant, shall be retained in the subject case file. 21. Notations on Plans. Plans submitted to the Department of Building and Safety, for the purpose of processing a building permit application shall include all of the Conditions of Approval herein attached as a cover sheet, and shall include any modifications or notations required herein. 22. Approval, Verification and Submittals. Copies of any approvals, guarantees or verification of consultations, review of approval, plans, etc., as may be required by the subject conditions, shall be provided to the Department of City Planning prior to clearance of any building permits, for placement in the subject file. 23. Code Compliance. Use, area, height, and yard regulations of the zone classification of the subject property shall be complied with, except where granted conditions differ herein. 24. Department of Building and Safety. The granting of this determination by the Director of Planning does not in any way indicate full compliance with applicable provisions of the Los Angeles Municipal Code Chapter IX (Building Code). Any corrections and/or modifications to plans made subsequent to this determination by a Department of Building and Safety Plan Check Engineer that affect any part of the exterior design or appearance of the project as approved by the Director, and which are deemed necessary by the Department of Building and Safety for Building Code compliance, shall require a referral of the revised plans back to the Department of City Planning for additional review and sign-off prior to the issuance of any permit in connection with those plans. 25. Enforcement. Compliance with these conditions and the intent of these conditions shall be to the satisfaction of the Department of City Planning. 26.1ndemnification. The applicant shall defend, indemnify and hold harmless the City, its agents, officers, or employees from any claim, action, or proceeding against the City or its agents, officers, or employees relating to or to attack, set aside, void or annul this approval which action is brought within the applicable limitation period. The City shall promptly notify the applicant of any claim, action, or proceeding and the City shall cooperate fully in the defense. If the City fails to promptly notify the applicant of any claim action or proceeding, or if the City fails to cooperate fully in the defense, the applicant shall not thereafter be responsible to defend, indemnify, or hold harmless the City. 0/R-2014-2880-DB-SPR Page 6 of 16

PROJECT BACKGROUND The project proposes the construction of an approximately 70,931 square foot, seven-story, 85- foot high residential building consisting of 86 dwelling units, of which 7 units will be restricted for very low income residents, with a 1,450 square foot courtyard on the second level, and a 1,940 square foot deck on the seventh floor. In accordance with California State Law (including Senate Bill1818, and Assembly Bills 2280 and 2222), the applicant is proposing to utilize Section 12.22 A.25 (Density Bonus) of the Los Angeles Municipal Code (LAMC), which permits a density bonus of up to 35 percent and 3 incentives. A density bonus and incentives are automatically granted in exchange for the applicant setting aside a portion of dwelling units, in this case 7 (11 percent) for habitation by Very Low income households for a period of 55 years. Consistent with the Density Bonus Ordinance, the Applicant is also automatically granted a reduction in required parking based on two Parking Options, or a reduction based on the Bicycle Parking Ordinance. The Applicant selected Parking Option 1, which permits 1 parking space for each residential unit of 0-1 bedrooms, 2 spaces for each residential unit of 2-3 bedrooms, and 2.5 spaces for each residential unit of 4 or more bedrooms. Based upon the number of dwelling units proposed and with a 21% reduction per the Bicycle Ordinance, 77 parking spaces shall be provided for the project. In addition, 14 automobile spaces must be provided and maintained for the adjacent medical center as required in a Zoning Administrator's letter dated July 16, 2014 and associated with Case Nos. ZV84-069 and ZA-85-0815(ZV). As permitted by LAMC Section 12.22 A.25, the applicant is requesting two incentives that will facilitate the provision of affordable housing at the site: a 35% increase in the floor area ratio allowing 4.05:1 in lieu of 3:1; and, a 20% reduction in required rear yard setback allowing 15 feet 2 inches in lieu of 19 feet. Pursuant to LAMC Section 12.22 A.25 (e)(2), in order to be eligible for any on-menu incentives, a Housing Development Project (other than an Adaptive Reuse Project) shall comply with the following criteria, which it does: a. The fac;ade of any porlion of a building that abuts a street shall be arliculated with a change of material or a break in plane, so that the fac;ade is not a flat surface. The proposed building has fac;ade facing Dunn Drive. As Exhibit A demonstrates, the street facing fac;ade is articulated with a regular rhythm of windows and balconies starting at the second level. Horizontal and vertical architectural elements, which establish Juliet balconies, frame floors 2 through 6. The fac;ade is marked by a change of color from grey to white, and accented by vertical blue mesh panels. The seventh level fac;ade has a regular rhythm of vertical elements and is distinguished by the rooftop open space. The ground floor is composed of covered surface parking accessed by an entrance at the southwest corner of the building, the entrance to the subterranean parking garage at the northwestern corner of the building, and the main building entrance located at the center of the facade. These three entrances are painted blue to distinguish them from the rest of the ground floor. b. All buildings must be oriented to the street by providing entrances, windows architectural features and/or balconies on the front and along any street facing elevation. The proposed project has one street facing fac;ade, which is along Dunn Drive and measures 230 feet in length. This fac;ade contains the two vehicular points of entry/exit, D/R-2014-2880-DB-SPR Page 7 of 16

as well as the primary pedestrian access to the building. The proposed design, shown in Exhibit A, shows Juliet balconies and windows all along the fa<jade for the second through seventh levels, and a wall along the base, which screens the at-grade parking level. The primary pedestrian entrance to the building has a direct connection to the sidewalk and is located in the center of the building and articulated by a two-story atrium and painted blue to distinguish the entry from the base of the building which is painted a darker grey color. The project meets the goals and intent of the Citywide Residential Design Guidelines. c. The Housing Development Project shall not involve a contributing structure in a designated Historic Preservation Overlay Zone (HPOZ) and shall not involve a structure that is a City of Los Angeles designated Historic-Cultural Monument (HCM). The proposed project is not located within a designated Historic Preservation Overlay Zone, nor does it involve a property that is designated as a City Historic-Cultural Monument. d. The Housing Development Project shall not be located on a substandard street in a Hillside Area or in a Very High Fire Hazard Severity Zone as established in Section 57.25.01 of the LAMC. The project is not located in a Hillside Area, nor is it located in a Very High Fire Hazard Severity Zone. 0/R-2014-2880-DB-SPR Page 8 of 16

DENSITY BONUS/AFFORDABLE HOUSING INCENTIVES COMPLIANCE FINDINGS 1. Pursuant to Section 12.22 A.25(c) of the LAMC, the Director shall approve a density bonus and requested incentive(s) unless the director finds that: a. The incentives are not necessary to provide for affordable housing costs as defined in California Health and Safety Code Section 50052.5 or Section 50053 for rents for the affordable units. The record does not contain substantial evidence that would allow the Director to make a finding that the requested incentives are not necessary to provide for affordable housing costs per State Law. The California Health & Safety Code Sections 50052.5 and 50053 define formulas for calculating affordable housing costs for very low, low, and moderate income households. Section 50052.5 addresses owner-occupied housing and Section 50053 addresses rental households. Affordable housing costs are a calculation of residential rent or ownership pricing not to exceed 25 percent gross income based on area median income thresholds dependent on affordability levels. The list of on-menu incentives in 12.22 A.25 were pre-evaluated at the time the Density Bonus Ordinance was adopted to include types of relief that minimize restrictions on the size of the project. As such, the Director will always arrive at the conclusion that the density bonus on-menu incentives are required to provide for affordable housing costs because the incentives by their nature increase the scale of the project. Floor Area Ratio (FAR): The maximum allowable FAR for the 25,745 square foot project site is 3:1. Section 12.22 A.25(f)( 4) of the LAMC allows for an incentive to increase FAR by a maximum of 35%, in this case that would result in an FAR of 4.05:1. The proposed project site meets the affordable housing qualifications necessary to achieve this FAR The project is requesting an incentive to increase the FAR to 4.05:1 which would allow for an additional 18,386 square feet of buildable area and increase the total proposed building area to 70,931 square feet. Rear Yard Setback: The requested incentive allows for a twenty percent reduction of the rear yard setback requirement to 15 feet 2 inches in lieu of 19 feet. The rear yard setback in the R5 zone is 15 feet with 1 additional foot per story over the third story, which in this case results in a 19 foot rear setback. The requested reduction allows a larger building footprint to accommodate the additional units. Reducing the rear yard setback by 3. 75 feet over the length of the rear fa~ade (230 feet) allows for an additional 862.5 square feet per floor for a total of 6,037.5 square feet. The proposed Project meets all other setback requirements. The requested incentives, an increase in FAR, and a 20 percent reduction in the required side yard setback, are expressed in the Menu of Incentives per LAMC 12.22 A.25(f) and, as such, permit exceptions to zoning requirements that result in building design or construction efficiencies that provide for affordable housing costs. The requested incentives allow the developer to expand the building envelope so the additional 23 units can be constructed and thereby cover the affordable housing costs. These incentives support the applicant's decision to set aside seven (7) Very Low Income dwelling units for 55 years. DIR-2014-2880-DB-SPR Page 9of16

b. The incentive will have a specific adverse impact upon public health and safety or the physical environment, or on any real property that is listed in the California Register of Historical Resources and for which there are no feasible method to satisfactorily mitigate or avoid the specific adverse Impact without rendering the development unaffordable to Very Low, Low and Moderate Income households. Inconsistency with the zoning ordinance or the general plan land use designation shall not constitute a specific, adverse impact upon the public health or safety. The proposed incentives will not have a specific adverse impact. A "specific adverse impact" is defined as, "a significant, quantifiable, direct and unavoidable impact, based on objective, identified written public health or safety standards, policies, or conditions as they existed on the date the application was deemed complete" (LAMC Section 12.22.A.25(b)). The proposed Project and potential impacts were analyzed in accordance with the City's Environmental Quality Act (CEQA) Guidelines and the City's L.A. CEQA Thresholds Guide. These two documents establish guidelines and thresholds of significant impact, and provide the data for determining whether or not the impacts of a proposed Project reach or exceed those thresholds. Analysis of the proposed Project involved the preparation of a Mitigated Negative Declaration (ENV- 2014-2881-MND), and it was determined that the proposed Project may have an impact on the following environmental factors: aesthetics (light and glare); biological resources; transportation/traffic; and utilities (water). However, mitigation measures will reduce impacts to less than significant, and are imposed as Conditions of Approval herein (Conditions 13 through 41 ). Therefore, there is no substantial evidence that the proposed Project will have a specific adverse impact on the physical environment, on public health and safety, and on property listed in the California Register of Historic Resources. SITE PLAN REVIEW FINDINGS 1. The project is in substantial conformance with the purposes, intent and provisions of the General Plan, applicable community plan, and any applicable specific plan. The proposed project is in substantial conformance with the purposes, intent and provisions of the General Plan and the Palms-Mar Vista-Del Rey Community Plan. The General Plan designates the subject site as General Commercial. This General Plan Designation corresponds to the C2 or C4 zone, both of which allow residential development at the R4 zone standards. The subject site is currently occupied by one surface parking lot and consists of five lots totaling approximately 25,745 square feet in area. The project proposes the development of a residential apartment building 85 feet (seven stories) in height with a maximum FAR of 4.05:1. The project's overall floor area is 70,931 square feet and will consist of 86 residential units (7 restricted affordable housing for Very Low Income residents) and approximately 8,950 square feet of usable open space. The applicant has requested two Density Bonus incentives for a 35% FAR increase, and a 20% setback reduction under Los Angeles Municipal Code (LAMC) 12.22 A.25 to provide for affordable housing costs per State Law. The proposed development will be compatible with existing and future development of the neighborhood. The project is proposing one seven-story building with a high level of design and building articulation along the primary street facing fa9ade along Dunn Drive. The project is located next to an existing seven-story medical office building to the east and a seven-story mixed-use multi-family building to the south. 0/R-2014-2880-0B-SPR Page 10 of 16

The Palms-Mar Vista-Del Rey Community Plan sets a vision for the community that lists the following applicable statements: To provide for the preservation of existing housing and for the development of new housing to meet the diverse economic and physical needs of the existing residents and projected population of the Plan area. To promote the adequacy and affordability of multiple-family housing and increase its accessibility to more segments of the population. The project proposes the development of an 86-unit multi-family residential building, with 7 units restricted for very low income residents in a neighborhood where zoning allows for similar uses and density. The R5P-1 zone allows residential development based on R5 zone standards per the LAMC, and is inclusive of the R4 zone standards. The General Plan designation for the subject property is General Commercial which is implemented by the C2 or C4 zones, which per LAMC allow residential development based on R4 standards. Therefore, the proposed project is consistent with the General Plan. The project is requesting density bonus incentives to increase FAR and decrease the rear yard setback requirements, in order to provide for affordable housing costs. The project would be allowed to construct 63 units by right per the R4 zone requirements, and with a maximum 35 percent density bonus, 86 units would be allowed. The subject site is located adjacent to multi-family residences to the north and south, and is across the street from single family residences. However, the properties across Dunn Drive are zoned C2, which would allow for similar development to the proposed project. The Palms-Mar Vista-Del Rey Community Plan envisions General Commercial and High Medium density residential uses to the west. Therefore, the proposed 86-unit housing project with 7 restricted affordable units for very low income residents is consistent with the purposes, policies, and programs of the Palms-Mar Vista-Del Rey Community Plan. 2. The project consists of an arrangement of buildings and structures (including height, bulk and setbacks), off-street parking facilities, loading areas, lighting, landscaping, trash collection, and other such pertinent improvements that is or will be compatible with existing and future development on adjacent properties and neighboring properties. The proposed project described in site plan, floor plans, elevations, and landscape plan marked as Exhibit A will be compatible with existing and future development on the neighboring properties that are currently a mix of multi-family residential (to the north and south) and commercial office uses (to the east), in conformance with the requirements of LAMC Section 16.05F4. All required setbacks are provided per the R4 zone, with the exception of the rear yard setback reduction based on the affordable housing density bonus incentive. The project conforms with the Citywide Residential Design Guidelines for multifamily housing. Height The proposed project consists of one building which is a maximum 85 feet tall (seven stories). The height district limits the building to a 3:1 FAR and no maximum height; however, the project is requesting a density bonus incentive to increase the allowable FAR to 4.05:1, which is the maximum 35% allowable with a density bonus incentive under LAMC Section 12.22.A.25. DIR-2014-2880-DB-SPR Page 11 of 113

Bulk/Massing The proposed project has one street frontage, which is along Dunn Drive, and measures approximately 230 feet and contains the main residential entry atrium, as well as the two points of entry/exit to the parking garage. The facade of the building is articulated with balconies and windows beginning on the second floor, and marked by contrasting colors and materials, as shown in Exhibit A. The building directly to the east is a seven story medical office, and the building to the south is a seven story mixed-use multi-family residential building. The ground floor contains the at-grade enclosed parking structure, with access at the southeast corner of the building to the adjacent garage, as well as access to the subject property's underground parking located at the northwest corner of the building. Therefore, the ground floor fac;ade conceals the parking from pedestrian view. The residential levels are articulated with balconies and windows, with the Dunn Drive fa<;ade utilizing a protruding frame to articulate the middle five levels of residential balconies, as shown in Exhibit A. Additionally, all four corners of the building are articulated with balconies and windows. Building Materials The primary components of the exterior fa<;ade consist of cement plaster with complimentary colors. The primary fac;ade along Dunn Drive is marked by a protruding section of white cement plaster that forms a frame around the balconies on the second through sixth floors. The balcony spaces are separated from each other by vertical perforated metal panels, colored in alternating shades of blue. The seventh floor windows are separated by vertical elements composed of cement board lap siding that protrude from the main building fac;ade. The roof deck, enclosed by a metal guardrail with metal mesh panels, is a distinguishing feature of the seventh floor. Entrances The primary pedestrian entrance is marked by a two story atrium which is located roughly in the middle of the Dunn Drive fac;ade. As recommended in the Residential Citywide Design Guidelines, the primary ground floor entrance is distinct and visible, with landscaping elements, along a direct path of travel to provide an inviting pedestrian experience. The stairs in the entry atrium are also highly visible and integrated with the design elements of the building, as the Design Guidelines suggest. The proposed project includes two vehicle access points off of Dunn Drive; the north entrance provides access to subterranean parking, while the south entrance provides access to at-grade parking. There is also an at-grade vehicular connection to the medical office parking structure located at the southeast corner of the project. Setbacks The proposed project includes a 15 foot front yard setback along Dunn Drive, and 10 foot side yard setbacks in conformance with the R4 zoning standards. The side yard setback requirement is 5 feet minimum with an additional 1 foot for every story above the second story, which for this project would require a 10 foot side yard setback. The east rear yard setback will be 15 feet 2 inches in lieu of the required 19 feet setback requirement ( 15 feet minimum plus 1 foot for every story over the third story), based on the 20% setback reduction density bonus incentive request per LAMC 12.22.A.25. Parking Parking for the proposed project will be divided between two lots: one at-grade lot comprised of 40 spaces; the second lot will be a subterranean lot comprised of 51 spaces. The Applicant selected Parking Option 1, which permits 1 parking space for each residential unit of 0-1 bedrooms, 2 spaces for each residential unit of 2-3 bedrooms, and 2.5 spaces for each residential unit of 4 or more bedrooms. Based upon the number of dwelling units proposed and with a 21% reduction per the Bicycle Ordinance, 77 parking spaces shall be D/R-2014-2880-DB-SPR Page 12 of 16

provided for the project. The project is also required to maintain 14 parking spaces currently utilized by the adjacent medical office, which will be located at the southern portion of the at-grade parking structure. Access to these spaces will be provided via a shared driveway connection at the southeast corner of the subject property, and will be separated from the remaining 26 residential spaces by a controlled access gate. Long-term bicycle parking will be provided in a room located on the second floor, and short-term spaces will be provided at the sidewalk near the main pedestrian entrance. Lighting All pedestrian walkways and vehicle access points will be well-lit. As required by the mitigation measures pursuant to Case No. ENV-2014-2880-MND, and incorporated herein as condition No. 16, all outdoor lighting provided onsite will be shielded to prevent excessive illumination. Landscaping The proposed project will provide approximately 8,950 square feet of open space consisting of a 1,450 square foot courtyard, a 1,940 square foot roof deck, a 2,100 square foot landscaped rear yard, and approximately 1,400 square feet of balconies. Various types of vegetation and trees are incorporated into the design of the project to minimize the visual impact of the building, including a green screen along the courtyard wall, and landscaping on all four sides of the building. The proposed project's landscaping creates a pedestrianfriendly environment along the sidewalk, providing an attractive and inviting pedestrian entrance to the building. Trash Collection The trash and recycling areas are located on the ground floor level in the at-grade parking lot. There is a residential trash chute, located near a stairwell, and a secondary trash and recycling location will be at the southeast corner of the at-grade parking lot. 3. The residential project provides recreational and service amenities to improve habitability for its residents and minimize impacts on neighboring properties. The proposed affordable housing project incorporates a total of 8,950 square feet of open space, slightly more than the 8,900 square feet required by LAMC Section 12.21 G.2. The open space areas consist of a 1,450 square foot courtyard, a 1,940 square foot roof deck, a 2,100 square foot landscaped rear yard, approximately 1,400 square feet of balconies, a 600 square foot community room, 730 square foot theater, and 500 square foot fitness room. The proposed project provides sufficient recreational and service amenities for its residents, which improves habitability, and minimizes impacts on neighboring properties. Condition No. 10 ensures that at least 8,900 square feet of open space will be provided. ENVIRONMENTAL REVIEW FINDING A Mitigated Negative Declaration, ENV-2014-2881-MND, was prepared for the proposed project. On the basis of the whole of the record before the lead agency including any comments received, the lead agency finds that, with imposition of the mitigation measures described in the MND (and incorporated into the Conditions of Approval herein), there is no substantial evidence that the proposed project will have a significant effect on the environment. The attached Mitigated Negative Declaration reflects the lead agency's independent judgment and analysis. The records upon which this decision is based are with the Environmental Review Section of the Planning Department in Room 750, 200 North Spring Street. Of R-20 14-2880-DB-SPR Page 13 of 16

DENSITY BONUS LEGISLATION BACKGROUND The California State Legislature has declared that "[t]he availability of housing is of vital statewide importance," and has determined that state and local governments have a responsibility to "make adequate provision for the housing needs of all economic segments of the community." Section 65580, subds. (a), (d). Section 65915 further provides that an applicant must agree to, and the municipality must ensure, the "continued affordability of all low and very low income units that qualified the applicant" for the density bonus. NOTE: California State Assembly Bill 2222 recently went into effect January 1, 2015. It increases covenant restrictions from 30 to 55 years, introduces housing replacement requirements, and adds a finding for denial that "the concession or incentive would be contrary to state or federal law." This determination letter reflects these requirements and the proposed project is subject to AB 2222 because the case is approved after January 1, 2015. With Senate Bill 1818 (2004), state law created a requirement that local jurisdictions approve a density bonus and up to three "concessions or incentives" for projects that include defined levels of affordable housing in their projects. In response to this requirement, the City created an ordinance that includes a menu of incentives (referred to as "on-menu" incentives) comprised of eight zoning adjustments that meet the definition of concessions or incentives in state law (California Government Code Section 65915). The eight on-menu incentives allow for: 1) reducing setbacks; 2) reducing lot coverage; 3) reducing lot width, 4) increasing floor area ratio (FAR); 5) increasing height; 6) reducing required open space; 7) allowing for an alternative density calculation that includes streets/alley dedications; and 8) allowing for "averaging" of FAR, density, parking or open space. In order to grant approval of an on-menu incentive, the City utilizes the same findings contained in state law for the approval of incentives or concessions. Under Government Code Section 65915(a), 65915(d)(2)(C) and 65915(d)(3) the City of Los Angeles complies with the State Density Bonus law by adopting density bonus regulations and procedures as codified in Section 12.22 A.25 of the Los Angeles Municipal Code. Section 12.22 A.25 creates a procedure to waive or modify zoning code standards which may prevent, preclude or interfere with the effect of the density bonus by which the incentive or concession is granted, including legislative body review. The Ordinance must apply equally to all new residential development. In exchange for setting aside a defined number of affordable dwelling units within a development, applicants may request up to three incentives in addition to the density bonus and parking relief which are permitted by right. The incentives are deviations from the City's development standards, thus providing greater relief from regulatory constraints. Utilization of the Density Bonus/Affordable Housing Incentives Program supersedes requirements of the Los Angeles Municipal Code and underlying ordinances relative to density, number of units, parking, and other requirements relative to incentives, if requested. For the purpose of clarifying the Covenant Subordination Agreement between the City of Los Angeles and the United States Department of Housing and Urban Development (HUD) note that the covenant required in the Conditions of Approval herein shall prevail unless pre-empted by State or Federal law. FINANCIAL ANALYSIS/PRO-FORMA Per the Affordable Housing Incentive Density Bonus provisions of the LAMC (Section 12.22 A.25) proposed projects that involve on-menu incentives are required to complete the Department's Master Land Use Permit Application form, and no supplemental financial data is required. The City typically has the discretion to request additional information when it is needed to help make D/R-2014-2880-DB-SPR IPCI!}1'1 14 of 16

required findings. However, the City has determined that the level of detail provided in a pro forma is not necessary to make the findings for on-menu incentives. This is primarily because each of the City's eight on-menu incentives provides additional buildable area, which, if requested by a developer, can be assumed to provide additional project income and therefore provide for affordable housing costs. When the menu of incentives was adopted by ordinance, the impacts of each were assessed in proportion to the benefits gained with a set-aside of affordable housing units. Therefore, a pro-forma illustrating construction costs and operating income and expenses is not a submittal requirement when filing a request for on-menu incentives. The City's Density Bonus Ordinance requires "a pro forma or other documentation" with requests for off-menu incentives but has no such requirement for on-menu requests. TIME LIMIT- OBSERVANCE OF CONDITIONS All terms and conditions of the Director's Determination shall be fulfilled before the use may be established. Pursuant to LAMC Section 12.25 A.2, the instant authorization is further conditional upon the privileges being utilized within three years after the effective date of this determination and, if such privileges are not utilized, building permits are not issued, or substantial physical construction work is not begun within said time and carried on diligently so that building permits do not lapse, the authorization shall terminate and become void. The applicant's attention is called to the fact that this grant is not a permit or license and that any permits and licenses required by law must be obtained from the proper public agency. Furthermore, if any condition of this grant is violated or not complied with, then the applicant or his successor in interest may be prosecuted for violating these conditions the same as for any violation of the requirements contained in the Municipal Code, or the approval may be revoked. Verification of condition compliance with building plans and/or building permit applications are done at the Development Services Center of the Department of City Planning at either Figueroa Plaza in Downtown Los Angeles or the Marvin Braude Constituent Service Center in the Valley. In order to assure that you receive service with a minimum amount of waiting, applicants are encouraged to schedule an appointment with the Development Services Center either by calling (213) 482-7077, (818) 374-5050, or through the Department of City Planning website at http://cityplanning.lacity.org. The applicant is further advised to notify any consultant representing you of this requirement as well. Section 11.00 of the LAMC states in part (m): "It shall be unlawful for any person to violate any provision or fail to comply with any of the requirements of this Code. Any person violating any of the provisions or failing to comply with any of the mandatory requirements of this Code shall be guilty of a misdemeanor unless that violation or failure is declared in that section to be an infraction. An infraction shall be tried and be punishable as provided in Section 19.6 of the Penal Code and the provisions of this section. Any violation of this Code that is designated as a misdemeanor may be charged by the City Attorney as either a misdemeanor or an infraction. Every violation of this determination is punishable as a misdemeanor unless provision is otherwise made, and shall be punishable by a fine of not more than $1,000 or by imprisonment in the County Jail for a period of not more than six months, or by both a fine and imprisonment." TRANSFERABILITY This determination runs with the land. In the event the property is to be sold, leased, rented or occupied by any person or corporation other than yourself, it is incumbent that you advise them regarding the conditions of this grant. If any portion of this approval is utilized, then all other conditions and requirements set forth herein become immediately operative and must be strictly observed. Of R-20 14-2880-DB-SPR Page 15 of 16

APPEAL PERIOD- EFFECTIVE DATE The Determination in this matter will become effective and final fifteen (15) days after the date of mailing of the Notice of Director's Determination unless an appeal there from is filed with the City Planning Department. It is strongly advised that appeals be filed early during the appeal period and in person so that imperfections/incompleteness may be corrected before the appeal period expires. Any appeal must be filed on the prescribed forms, accompanied by the required fee, a copy of this Determination, and received and receipted at a public office of the Department of City Planning on or before the above date or the appeal will not be accepted. Forms are available on-line at www.cityplanning.lacity.org. Planning Department public offices are located at: Downtown Office Figueroa Plaza 201 North Figueroa Street, 4th Floor Los Angeles, CA 90012 (213) 482-7077 Valley Office Marvin Braude Constituent Service Center 6262 Van Nuys Boulevard, Suite 251 Van Nuys, CA 91401 (818) 374-5050 Only abutting property owners and residents can appeal this Density Bonus Compliance Review Determination. Per the Density Bonus Provision of State Law (Government Code Section 65915) the Density Bonus increase in units above the base density zone limits and the appurtenant parking reductions are not a discretionary action and therefore cannot be appealed. Only the requested incentives are appealable. Per Section 12.22 A.25 of the LAMC, appeals of Density Bonus Compliance Review cases are heard by the City Planning Commission. The time in which a party may seek judicial review of this determination is governed by California Code of Civil Procedures Section 1094.6. Under that provision, a petitioner may seek judicial review of any decision of the City pursuant to California Code of Civil Procedure Section 1094.5, only if the petition for writ of mandate pursuant to that section is filed no later than the 90th day following the date on which the City's decision becomes final. Michael J. LeGrande Director of Planning Reviewed by: ji~~aj NaOmi Guth( City Planner an Como, City Pia alan.como@lacity.org ----.., D/R-2014-2880-DB-SPR Page 16 of16